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5 Considerations for those eyeing retirement

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Tom Toggas looks at a recent USA Today article that highlights five steps that should be taken by people who are looking to soon retire

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5 Considerations for those eyeing retirement

  1. 1. 5 Considerations for a Retirement in the Near Future
  2. 2. Plan what to do with your 401(k) : Upon retiring, you have several possible options with your 401 (k) including rolling it over into an IRA, cashing i t out. According to Nicastro, cashing out your 401 (k) is generally not advisable as this money will be taxed as regular income. if younger than 59 and a half, you could face further penalties.
  3. 3. Spend time on creating a monthly spending budget and plan: This will be vital in determining your expected living costs compared to your expected retirement income. Create a simple spreadsheet. Fill out one column with info about your monthly income, which includes pension, social security, and the withdrawals from your retirement fund. In the next column, you should write down your best estimate for your future monthly expenses. This will give you a rough, yet useful, framework of your finances during your retirement.
  4. 4. Examine your investment Portfolio: Nicastro notes how those looking to retire will soon the largest factor of their normal income. and will. therefore need. investments to make up the difference. Nicastro states that it’s generally a good idea for retirees to take less risks.
  5. 5. Spend time on creating a monthly spending budget and plan: This will be vital in determining your expected living costs compared to your expected retirement income. Create a simple spreadsheet. Fill out one column with info about your monthly income, which includes pension, social security, and the withdrawals from your retirement fund. in the next column, you should write down your best estimate for your future monthly expenses. This will give you a rough, yet useful, framework of your finances during your retirement. Think about enrolling in Medicare: You will want to . o*no11ro ‘I-l''l' . l/ l.Qf‘]‘lf"'Y'Q nnxroro ‘l-he r*-no~| - AF xrn11r _
  6. 6. Think about enrolling in Medicare: You will want to ensure that Medicare covers the cost of your healthcare if you are 65 or older, or disabled. While medicare will help pay for your health care costs, it is probable that it will not cover all these types of expenses during the course of your retirement.
  7. 7. Tom Toggas

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